Brent oil price shoots to near $81, US dollar remains weak

Brent oil prices have shot up through the $80 mark in late trading yesterday and is currently higher near $81 as the US dollar remains weak, while the latest US oil data out of the United States boosts oil prices.

In London, Brent crude oil futures for November 2010 delivery was trading at $80.74 a barrel, 08.00 GMT on the ICE Futures Exchange after peaking this morning at $80.98 around 04.00 GMT.

US Dollar Remains Weak

The US dollar remains weak in currency markets which is contributing to higher oil prices. The US Dollar Index which tracks the dollar unit against a basket of six currencies, declined 0.3% to 78.779 on the expectations that the US Federal Reserve would resort to further easing (money printing).

The US Dollar Index has lost more than five percent this month and is down nearly nine percent for the tihrd quarter of 2010.

Meanwhile, US Government data out yesterday indicated that US oil crude stocks fell by 500,000 barrels to 357.9 million barrels, according to the US EIA.

Brent oil’s peak price for this year so far is $87 a barrel, reached at the end of April 2010.

Tags:  brent, brent oil price, dollar, oil, oil trading, price, US dollar, us dollar index